14:58 | 22/08/2016 Economy
(VEN) - The Q2 Business Climate Index (BCI) survey announced by the European Chamber of Commerce in Vietnam (EuroCham) shows better confidence of EU companies in the Vietnamese investment environment and reveals a higher flow of EU investment into Vietnam.
The Q2 BCI survey reached 77 points. As many as 56.3 percent of EU companies indicated Vietnam’s macroeconomic stability and improvement, while 9.4 percent forecasted deterioration.
Optimism on the business situation in the second quarter ranked high among EU companies (66.7 percent) while only 12.5 percent worried about not good or very poor situation. They also expected lighting business prospects in the third quarter, with 9.4 percent and 54.2 percent of the respondents addressing very good and good situation, respectively.
Around 49 percent of EU companies forecasted the number of orders or revenues to increase slightly in the next quarter, while 15.6 percent of them expected a significant increase in revenues in the third quarter.
Some 43.8 percent of surveyed companies said they would increase investment, while 43.7 percent expected an increase in headcount.
Vietnam had 1,809 valid investment projects from 24 EU countries with total registered capital of US$23.16 billion as of April 2016, accounting for 8.7 percent of the country’s total projects and 8 percent of total registered capital, according to the Ministry of Planning and Investment’s statistics. EU companies have paid special attention to Vietnam’s manufacturing and processing sector, real estate business, and electricity production and distribution.
“EuroCham members maintain a positive view on the Vietnamese market and their business operations in its country. It’s a good sign for the implementation of the EU-Vietnam Free Trade Agreement, which is expected to promote trade and investment activities of EU companies in Vietnam,” EuroCham Chairman Michael Behrens said.
Expressing his confidence on the positive development of bilateral trade and investment between the EU and Vietnam as well as numerous opportunities from the EU-Vietnam Free Trade Agreement, Head of the Delegation of the European Union in Vietnam Bruno Angelet affirmed: “I will work together with partners to promote EU investment in Vietnam and call for more investors in the coming time.”
The survey was sent out to 883 EuroCham members including some of the largest European investors operating in Vietnam. The survey was also made before the UK referendum.